Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of California on behalf of shareholders of iRhythm Technologies who purchased shares between August 4, 2020 and January 28, 2021.
iRhythm and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On December 1, 2020, the Centers for Medicare and Medicaid Services (CMS) announced its 2021 Medicare Physician Fee Schedule (MPFS) Final Rule establishing the payment policies and rates that Medicare will use next year. However, the Rule did not finalize pricing reimbursement rates for several items relevant to the Company, including codes related to cardiac monitoring. On this news, the price of iRhythm’s shares plummeted approximately 20%.
Then, on January 29, 2021, an analyst at Baird Research noted that Medicare Administrative Contractor rates published by Novitas Solutions, a Medicare administrative contractor, “look way lower” than those published in the MPFS.
On this news, the price of iRhythm’s shares plummeted approximately 33%.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until April 2, 2021 to request that the court appoint them lead plaintiff.